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To calculate the deductions for Social Security and Medicare based on Renae Walters' salary of $9,000 per month, we need to apply the relevant deduction rates.

### 1. **Social Security Deduction:**
- The Social Security tax rate is **6.2%** of gross earnings.
- There is a wage base limit, meaning Social Security tax only applies to earnings up to a certain amount. For 2023, the wage base limit is **$160,200**.

### 2. **Medicare Deduction:**
- The Medicare tax rate is **1.45%** of gross earnings.
- There is no wage base limit for Medicare, meaning all earnings are subject to this tax. Additionally, high earners are subject to an extra 0.9% Medicare tax, but only if their income exceeds $200,000 (for single filers).

Now let's break down the deductions month by month:

### **January Deductions:**
- **Social Security:**
  - Monthly salary: $9,000
  - 6.2% of $9,000 = $ 0.062 \times 9,000 = 558 $
  - **January Social Security deduction**: $558
- **Medicare:**
  - 1.45% of $9,000 = $ 0.0145 \times 9,000 = 130.50 $
  - **January Medicare deduction**: $130.50

### **November Deductions:**
Assuming the same salary from January to November, by November, Renae's cumulative earnings will be $9,000 × 11 = $99,000, which is still below the $160,200 wage base for Social Security. Hence, full deductions apply.
- **Social Security**:
  - 6.2% of $9,000 = $558
  - **November Social Security deduction**: $558
- **Medicare**:
  - 1.45% of $9,000 = $130.50
  - **November Medicare deduction**: $130.50

### **December Deductions:**
By December, the cumulative earnings would reach $9,000 × 12 = $108,000, which is still below the wage base limit.
- **Social Security**:
  - 6.2% of $9,000 = $558
  - **December Social Security deduction**: $558
- **Medicare**:
  - 1.45% of $9,000 = $130.50
  - **December Medicare deduction**: $130.50

### Summary of Deductions:
| Month     | Social Security | Medicare |
|-----------|-----------------|----------|
| January   | $558            | $130.50  |
| November  | $558            | $130.50  |
| December  | $558            | $130.50  |

Would you like more details or further clarification on any of these calculations?

Here are five related questions you might consider:
1. What happens to Social Security deductions when the wage base is exceeded?
2. How would deductions change if Renae earned over $200,000 annually?
3. How is the additional Medicare tax calculated for high-income earners?
4. What other taxes are typically deducted from a salary?
5. How do annual changes to Social Security wage limits affect deductions?

**Tip**: Always check the current year's Social Security wage base limit, as it changes annually and can impact deductions.

Renae Walters is paid a salary of $9,000 per month. How much is deducted in January, November, and December for Social Security and Medicare?

Learn how to calculate Social Security and Medicare deductions from a monthly salary of $9,000. This example covers percentage calculations and understanding wage base limits for deductions, suitable for students in Grades 10-12.

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